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Transcript
Example 4: © Lisa Davenport 2015 Mackenzie invested $3500 in a mutual fun at a yearly rate of 6%. She earned $945 in interest. For how long was the money invested? Example 5: Mrs. Smith invested $4000 in a bond with a yearly interest rate of 4%. Her total interest on the investment was $800. What was the length of the investment? Simple Interest I=prt Formula Interest: _____________________________ ______________________________________ ______________________________________ ______________________________________ _____________________________________. Example 1: To buy a car, Mitchell borrowed $17,000 for 3 years at an annual simple interest rate of 9%. If it takes him 3 full years to pay off the loan, how much interest will he pay? Example 2: Keith’s parents deposited $2,500 into his savings account as a college fund when he was born. How much will Keith have in his account after 18 years at a yearly simple interest rate of 3.75%? Example 6: Mr. McGee borrowed $8,000 for 4 years to remodel his restaurant. If he repaid a total of $10,320, at what interest rate did he borrow the money? Example 3: A bank offers an annual simple interest rate of 7% on home improvement loans. How much would Tony owe is he borrowed $8,000 for 18 months? Solve for p, r or t. Solve for I (interest) Example 4: © Lisa Davenport 2015 Mackenzie invested $3500 in a mutual fun at a yearly rate of 6%. She earned $945 in interest. For how long was the money invested? I = prt 945 = 3500(0.06)(t) 945 = 210t t = 4.5 years Example 5: Answer Key! Mrs. Smith invested $4000 in a bond with a yearly interest rate of 4%. Her total interest on the investment was $800. What was the length of the investment? I = prt 800 = 4000(0.04)(t) 800 = 160t t = 5 years Principal – the amount borrowed or invested Simple Interest Interest I=prt Rate of interest (%) Formula Time (years) Interest is the amount of money Interest: _____________________________ charged for borrowing or using money. ______________________________________ (Examples: Car loans, home loans, student loans, ______________________________________ Investments, savings accounts) ______________________________________ _____________________________________. Example 1: To buy a car, Mitchell borrowed $17,000 for 3 years at an annual simple interest rate of 9%. If it takes him 3 full years to pay off the loan, how much interest will he pay? I = prt I = 17000(0.09)(3) I = $4,590 Example 2: Keith’s parents deposited $2,500 into his savings account as a college fund when he was born. How much will Keith have in his account after 18 years at a yearly simple interest rate of 3.75%? I = prt I = 2500(0.0375)(18) I = 1,687.50 Example 6: $2,500 + $1,687.50 $4,187.50 Mr. McGee borrowed $8,000 for 4 years to remodel his restaurant. If he repaid a total of $10,320, at what interest rate did he borrow the money? I = prt 2320 = 8000(r)(4) 2320 = 32000r 0.0725 = r $10,320 - $8000 $2,320 r = 7.25% Solve for p, r or t. Example 3: A bank offers an annual simple interest rate of 7% on home improvement loans. How much would Tony owe is he borrowed $8,000 for 18 months? I = prt I = 8000(0.07)(1.5) I = $840 18 months = 18 ÷ 12 = 1.5 years Solve for I (interest) © Lisa Davenport 2015 Directions: Print pages 1 & 2 (3 & 4 for the answer key) front to back. On my printer, I use the option to print double-sided and to flip along the long edge. Have students cut the page in half, along the dashed line, creating two pieces. They will then line up the two pieces as shown: Fold over the top portion and secure with a few staples. The final product should look like this: Fonts provided by: KG (Kimberly Geswein Fonts) “kg pdx Bridgetown”